Lambeth residents will see their council tax bills rise by 1.99% in 2015/16 as the local authority bids to reduce its deficit by £1.8m.
It's the first council tax rise in six years and means that a Band D property in the borough will pay £943.70.
Central government cut £18m of funding for Lambeth Council this year, but anything higher than a 1.99% rise would have required a borough-wide referendum.
Town hall chiefs will also have to cut a further £90m from the budget used to provide services to residents over the next three years, the council reports.
This funding cut comes on top of losing its cash reward from central government for keeping council tax rates on hold, which has netted Lambeth Council £7.9m since 2011/12.
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